Marvin OnumonuSmart Pension, Ctrl Alt, Mobius and Octopus Energy Generation have signed a memorandum of understanding (MoU) to form the tokenised renewable assets coalition (TRAC).
The group will look at how blockchain-based tokenisation can work with pension investment systems to reduce complexity, boost liquidity and lower costs.
The aim is to build models that pension providers and investment platforms can use to broaden their investment choices.
TRAC brings together Ctrl Alt’s expertise in tokenisation, Mobius’ investment platform, Smart Pension’s work in UK pensions and Octopus Energy Generation’s experience in renewables.
The coalition will focus on removing barriers for pension providers who want to invest in renewable assets.
This partnership follows the Mansion House Accord and the UK Government’s Pension Schemes Bill, which want pension providers to invest 10% of their default funds in private market assets.
The Government’s Financial Services Growth and Competitiveness Strategy is set to push these plans further, aiming to unlock up to £50bn in investment for UK businesses.
Smart Pension, one of seventeen Accord signatories representing 90% of UK active defined contribution (DC) savers, has committed to put 15% of its default fund into private markets and projects like renewable energy by 2030.
Recently, Smart Pension invested £330m in two Octopus Energy Generation renewable funds using the Mobius platform.
The coalition will look at practical ways to help pension schemes meet these targets and invite others to look at tokenisation opportunities.
James Finch, CEO of Mobius, said: “UK pensions, renewable assets and tokenisation have a huge amount to offer each other.
“Working alongside these fellow innovators provides the opportunity to explore how this combination could deliver meaningful benefits to UK savers.
“At Mobius we’re always expanding what’s possible in pensions, and this collaboration is a natural extension of that mindset.”
Matt Ong, founder and CEO of Ctrl Alt, said: “This coalition is an important first step in demonstrating how tokenisation can unlock access to previously hard-to-reach asset classes.
“By integrating our tokenisation infrastructure with a trusted investment platform, a UK master trust, and one of Europe’s largest renewable energy investors, we aim to show how blockchain-based solutions can help pensions access new investment opportunities, enhance diversification and support government growth strategies.”
James Lawrence, director of investment proposition at Smart Pension, said: “We are proud to be one of the UK master trusts leading the way in technology and private markets investment, which we believe will help drive growth for the country’s critical infrastructure and support our transition to a net zero economy.
“This collaboration will lay the foundations to help us make the innovative investments to scale, as we look to achieve tokenised AUM by the end of next year.”
Matt Setchell, co-head at Octopus Energy Generation’s Funds Business, said: “Renewables are destined to be tokenised, and I couldn’t be prouder to be at the forefront of this – alongside industry trailblazers who, like us, have been driving disruption for years.
“Through this alliance, we’ll be able to bring innovation into one of the next-gen markets and maximise savings for hard-working pensioners, all while building out a grid powered by cheap energy.”
